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Author: Zhenxu Tong Publisher: ISBN: Category : Languages : en Pages : 47
Book Description
The transaction cost theory on managerial ownership and firm value predicts that a deviation from optimal managerial ownership reduces firm value. This paper empirically tests the transaction cost theory by studying the relation between the deviations on both sides of optimal CEO ownership and firm value. We find that both above-optimal and below-optimal deviations reduce firm value. We find that the change in CEO ownership is associated with a higher abnormal return if it moves CEO ownership towards the optimal level, and that the change in CEO ownership is associated with a lower abnormal return if it moves CEO ownership away from the optimal level. These findings are consistent with the transaction cost theory on managerial ownership and firm value.
Author: Zhenxu Tong Publisher: ISBN: Category : Languages : en Pages : 47
Book Description
The transaction cost theory on managerial ownership and firm value predicts that a deviation from optimal managerial ownership reduces firm value. This paper empirically tests the transaction cost theory by studying the relation between the deviations on both sides of optimal CEO ownership and firm value. We find that both above-optimal and below-optimal deviations reduce firm value. We find that the change in CEO ownership is associated with a higher abnormal return if it moves CEO ownership towards the optimal level, and that the change in CEO ownership is associated with a lower abnormal return if it moves CEO ownership away from the optimal level. These findings are consistent with the transaction cost theory on managerial ownership and firm value.
Author: Timothy Colin Campbell Publisher: ISBN: Category : Languages : en Pages :
Book Description
Recent theory predicts that two factors influencing the CEO's view of risk, overconfidence and debt-like compensation, have implications for CEO forced turnover and firm equity value, respectively. We test each of these predictions using large samples of CEOs from S & P 1500 firms, with statistical methods such as Cox proportional semi-parametric hazard models and Ordinary Least Squares regressions. Section 2 tests the theoretical prediction that CEOs with excessively low or excessively high overconfidence face a higher likelihood of forced turnover. We find empirical support for this prediction: excessively overconfident (diffident) CEOs have forced turnover hazard rates approximately 67% (97%) higher than moderately overconfident CEOs. To the extent that boards terminate non-value-maximizing CEOs, the results are broadly consistent with the view that there is an interior optimum level of managerial overconfidence that maximizes firm value. Section 3 tests the theoretical prediction that debt or debt-like compensation can be used as a part of optimal executive compensation, leading to an increase in the value of equity. We find weak evidence of positive abnormal returns in response to decreases in the deviation from optimal CEO debt-to-equity when the CEO's debt-to-equity was less than the firm's or when then firm had low institutional ownership. The results suggest that the optimal use of debt compensation can in fact be beneficial to equity holders.
Author: Frank R. Lichtenberg Publisher: MIT Press ISBN: 9780262121644 Category : Business & Economics Languages : en Pages : 180
Book Description
In this revealing study Frank Lichtenberg uses Census Bureau and other data on hundreds of business transactions during the 1970s and 1980s to examine the effects of changes in corporate control on productivity. The 1980s saw explosive activity in the arena of corporate takeovers. In this revealing study Frank Lichtenberg uses Census Bureau and other data on hundreds of business transactions during the 1970s and 1980s to examine the effects of changes in corporate control on productivity. He concludes that the restructuring of the U.S. economy during the past decade has contributed to higher productivity and increased international competitiveness. Corporate Takeovers and Productivity examines the effects of mergers and acquisitions, in general, and leveraged buyouts, in particular on a number of important, interrelated variables: on the productivity and market share of manufacturing plants, on fixed and R&D investment, on the employment and wages of both blue- and white-collar workers, and on corporate diversification. Among Lichtenberg's findings are that the least productive plants are most likely to change owners - a change that tends to raise productivity performance; that takeovers significantly reduce the employment and wages of white-collar workers (except R&D personnel) but not of blue-collar workers; that industrial consolidation is one source of the productivity gains from takeovers; and that the U.S. LBOs and foreign mergers and acquisitions do not have the same effects as U.S. mergers and acquisitions.
Author: Ismail Lahlou Publisher: Springer ISBN: 3030050173 Category : Business & Economics Languages : en Pages : 204
Book Description
Corporate governance, a subject that a few decades ago escaped the attention of all but a handful of academics and shareholders, has gradually become a central concern worldwide. This book contributes to the existing literature on the structure and effectiveness of corporate boards. It comprises three topics that address distinct research questions on board structure, the deployment of board resources to monitoring and advisory duties, and the use of equity-based incentives in the compensation packages of directors. Firstly, the book provides strong new evidence on the importance of corporate board functions in value creation. Secondly, it provides some evidence of the potential conflict between the two primary functions of corporate boards. The results indicate that while the board’s advising quality weakens when the board is principally devoted to monitoring duties, the presence of advisory directors on the board does not have any impact on the effectiveness of board oversight, which offers a more complete view on the tradeoffs between the board’s two major functions. Finally, the results suggest that the closer directors' compensation is tied to the firm's stock, the more consistent corporate acquisition decisions are with shareholder interests.
Author: David Dunning Publisher: Psychology Press ISBN: 1135432759 Category : Psychology Languages : en Pages : 243
Book Description
People base thousands of choices across a lifetime on the views they hold of their skill and moral character, yet a growing body of research in psychology shows that such self-views are often misguided or misinformed. Anyone who has dealt with others in the classroom, in the workplace, in the medical office, or on the therapist’s couch has probably experienced people whose opinions of themselves depart from the objectively possible. This book outlines some of the common errors that people make when they evaluate themselves. It also describes the many psychological barriers - some that people build by their own hand - that prevent individuals from achieving self-insight about their ability and character. The first section of the book focuses on mistaken views of competence, and explores why people often remain blissfully unaware of their incompetence and personality flaws. The second section focuses on faulty views of character, and explores why people tend to perceive they are more unique and special than they really are, why people tend to possess inflated opinions of their moral fiber that are not matched by their deeds, and why people fail to anticipate the impact that emotions have on their choices and actions. The book will be of great interest to students and researchers in social, personality, and cognitive psychology, but, through the accessibility of its writing style, it will also appeal to those outside of academic psychology with an interest in the psychological processes that lead to our self-insight.
Author: Lukas Hengartner Publisher: Springer Science & Business Media ISBN: 3835093916 Category : Business & Economics Languages : en Pages : 224
Book Description
Lukas Hengartner shows that both firm complexity and managerial power are associated with higher pay levels. This suggests that top managers are paid for the complexity of their job and that more powerful top managers receive pay in excess of the level that would be optimal for shareholders.
Author: Neil Bendle Publisher: FT Press ISBN: 0136755313 Category : Business & Economics Languages : en Pages : 710
Book Description
Your Definitive, Up-to-Date Guide to Marketing Metrics—Choosing Them, Implementing Them, Applying Them This award-winning guide will help you accurately quantify the performance of all your marketing investments, increase marketing ROI, and grow profits. Four renowned experts help you apply today's best practices for assessing everything from brand equity to social media, email performance, and rich media interaction. This updated edition shows how to measure costly sponsorships, explores links between marketing and financial metrics for current and aspiring C-suite decision-makers; presents better ways to measure omnichannel marketing activities; and includes a new section on accountability and standardization in marketing measurement. As in their best-selling previous editions, the authors present pros, cons, and practical guidance for every technique they cover. Measure promotions, advertising, distribution, customer perceptions, competitor power, margins, pricing, product portfolios, salesforces, and more Apply web, online, social, and mobile metrics more effectively Build models to optimize planning and decision-making Attribute purchase decisions when multiple channels interact Understand the links between search and distribution, and use new online distribution metrics Evaluate marketing's impact on a publicly traded firm's financial objectives Whatever your marketing role, Marketing Metrics will help you choose the right metrics for every task—and capture data that's valid, reliable, and actionable.
Author: Zhenxu Tong
Author: Zhenxu Tong
Author: Timothy Colin Campbell
Author: Sherief Meleis
Author: Michel Habib
Author: Waddah Hallak
Author: Frank R. Lichtenberg
Author: Ismail Lahlou
Author: David Dunning
Author: Lukas Hengartner
Author: Neil Bendle